How to Use a Salary Converter to Compare Job Offers

What a salary converter does for you

A salary converter is a practical tool that turns a dollar figure into a number you can compare against the national average. Think of it as a ruler for pay. The national line is set at 100, which equals full-time adult ordinary-time earnings of $2,083.70 per week, or $108,352 a year (Australian Bureau of Statistics, Average Weekly Earnings, May 2026). If a job ad says $80,000 a year, that’s an index of about 74. If it says $130,000, that’s about 120. Suddenly you can see where an offer sits without needing to memorise averages.

Reading a job ad with the salary converter

When you see a salary in a job ad, the first question is: what does that actually mean? A salary converter answers that by comparing the figure to the national benchmark. For example, a graduate role offering $65,000 gives an index of 60 – well below the national line. A senior role offering $150,000 gives an index of 138. The converter also helps you adjust for part-time or casual work. If a casual job pays $35 per hour, that’s $1,400 for a 40-hour week, annualised to $72,800 (index 67). But remember, casual rates usually include a loading (often 25%) to compensate for lack of leave. The converter can show the base equivalent.

The salary index explained

The salary index is simply your yearly gross pay divided by the national line, then multiplied by 100. The national line is $108,352. So a $90,000 salary gives an index of 83. A $200,000 salary gives an index of 185. The index works for any pay period – weekly, fortnightly, monthly – as long as you annualise it. It’s a consistent way to compare offers across industries, states, and roles. The on-site reference provides indices for states and industries. For instance, the Mining industry index is 154.7, meaning the typical mining worker earns about 55% more than the national average. Retail trade sits at 75.9, about 24% below. If you’re considering a move from retail to mining, the converter shows the gap.

Awards and minimums

Australia’s modern awards set minimum pay rates for many jobs. The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, annualised $52,255 (index 48.2). But most awards pay more. For example, the Health Professionals and Support Services Award has higher rates for qualified staff. The General Retail Industry Award sets minimums for retail workers. When you use a salary converter, you can check if the offered pay is above the award minimum. The Fair Work Ombudsman provides pay guides for each award. Always verify that the salary meets or exceeds the award rate for your classification.

Superannuation and tax

Super is extra. From 1 July 2026, the super guarantee is 12% of ordinary time earnings, up to a maximum contribution base of $270,830. A salary converter typically uses gross base pay, not including super. If an ad says “$100,000 plus super”, the base is $100,000. If it says “$112,000 package including super”, the base is $100,000. For take-home pay estimates, use the resident tax rates for 2026–27: nil up to $18,200; 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above. Add the 2% Medicare levy. A $100,000 salary has a tax bill of about $24,667 plus Medicare $2,000, leaving about $73,333. But this ignores HELP, salary sacrifice, and other factors.

Comparing offers across states

Salaries vary by location. The on-site reference shows state indices: NSW 101.2, VIC 98, QLD 97.9, SA 94.6, WA 106.9, TAS 88.6, NT 95.2, ACT 109.9. A $100,000 salary in Tasmania (index 88.6) is relatively higher than the same salary in the ACT (index 109.9). The salary converter can adjust for this by showing the equivalent index in each state. For example, $100,000 in Tasmania gives an index of 92 (100,000/108,352*100), but relative to the state average it’s above the norm. In the ACT, $100,000 is below the state average. This helps you decide if a relocation offer is fair.

Practical example: comparing two job ads

Say you have two offers: one in Sydney for $95,000, and one in Perth for $105,000. Using the salary converter, $95,000 gives index 87.7; $105,000 gives index 96.9. But adjust for state indices: NSW index 101.2 means the typical NSW worker earns $109,658. Your $95,000 is 87% of that. WA index 106.9 means typical WA worker earns $115,825. Your $105,000 is 91% of that. So the Perth offer is closer to the local average. Also consider cost of living, but the converter gives a quick pay comparison.

Using the salary converter with awards and enterprise agreements

If you’re covered by an enterprise agreement, the pay rates may differ from the award. The salary converter still works – just input the base salary. But check that the agreement meets the Better Off Overall Test. The Fair Work Ombudsman’s Pay and Conditions Tool can help. The converter is a starting point, not a legal check.

Limitations

The salary index is based on gross ordinary-time earnings for full-time adults. It doesn’t include overtime, bonuses, commissions, or non-cash benefits. It’s a benchmark, not a quote for a specific job. Take-home pay estimates are rough. Always read the fine print in a job ad: is the salary inclusive of super? Is it pro-rata? Is it base plus commission? The converter works best when you have a clear annual base figure.

Where to find more

For award rates, see the pay guides from Fair Work Ombudsman. For state comparisons, visit the states page. For industry benchmarks, check industries. To understand the methodology, read how the index works. And for more topics like this, browse topics.

Summary

A salary converter is a simple but powerful tool. It turns a dollar amount into an index that tells you where you stand against the national average. Use it when reading job ads, negotiating offers, or planning a move. Combine it with award checks and state adjustments for a full picture. The national line is $108,352 (index 100). Anything below 100 is below average; above 100 is above average. Now you can compare apples with apples.